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CSE investor sentiment soars on Chinese financial assistance news

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By Hiran H.Senewiratne

CSE investor sentiment was propped up yesterday when Chinese ambassador to Sri Lanka Qi Zhenhong announced that the Chinese government is considering extending to Sri Lanka US $ 2.5 billion in financial assistance in two components. The share market was also boosted by the news that Sri Lanka is seeking support from the IMF for a bailout, stock market analysts said.

“The Chinese government is considering US $ 2.5 billion – a US $ 1 billion loan, 1.5 billion dollars buyers’ credit, ambassador Qi told a media conference in Colombo.

Under this loan, buyer’s credit is usually a loan given by Exim Bank of China to purchase goods and services from the People’s Republic and has been used to finance infrastructure in the island in the past.

Amid those developments both indices moved upwards. The All -Share Price Index moved up by 67.9 points and S and P SL20 rose by 29.8 points. Turnover stood at Rs 1.1 billion sans a single crossing. In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 194 million (752,000 shares traded), Browns Investments Rs 120.9 million (10.8 million shares traded), LOLC Finance Rs 79.8 million (4.5 million shares traded), JKH Rs 74.8 million (77,000 shares traded), Royal Ceramic Rs 47.5 million (953,000 shares traded), ACL Cables Rs 44.1 million (552,000 shares traded) and Hayleys Rs 40.3 million (407,000 shares traded). During the day 51.6 million share volumes changed hands in14000 transactions.

The CSE turnover level and investor participation was low compared to the previous year. It is said that high net worth and institutional investor participation was noted in Hayleys, Commercial Bank and JKH. Mixed interest was observed in Expolanka Holdings, LOLC Finance and LOLC Holdings, while retail interest was noted in Browns Investments, SMB Leasing nonvoting and Dialog Axiata.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) and Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments),

Sri Lanka’s bond market remained inactive yesterday in dull market trade, brokers said while the rupee was quoted around 275 in bids with no offers.

Commercial banks were offering to sell dollars at 274.99 rupees for telegraphic transfer and buy at 264.66 rupees on Friday.

In the secondary market, only a bond maturing on 01.08.2024 was quoted at 14.30/40 per cent on Monday, up from 14.18/28 a day earlier. Sri Lanka’s debt office is issuing 56.5 billion rupees to be sold in a Treasury bills auction to be held on Wednesday (23).

The 56.5 billion bills will be split into 20 billion maturing in 3-months, 15 billion in 6-months and 21.5 billion in 1-year.



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Surplus of market liquidity surged by Rs. 43 billion within a week

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But interest rates charged by commercial banks show marginal increase

By Sanath Nanayakkare

The total outstanding market liquidity was a surplus of Rs. 123.370 bn by 08th November 2024, compared to a surplus of Rs. 80.050 bn by the end of last week, states the weekly economic Indicators report of the Central Bank of Sri Lanka.

“The reserve money increased compared to the previous week mainly due to increase in the currency in circulation and deposits held by the commercial banks with the Central Bank,” it states.

“Meanwhile, weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 08th November 2024 increased by 11 bps to 9.16 per cent compared to the previous week,” it indicates.

The following are some facts and figures mentioned in the report.

During the period from 02nd November to 08th November 2024, crude oil prices followed a general upward trend mainly owing to the OPEC+ decision to extend the output cuts to another month in December and concerns over supply risks stemming from Trump’s presidency.

Overall, Brent and WTI prices rose by US dollars 1.35 and US dollars 1.56 per barrel, respectively, over the period.

Broad money (M2b) expanded by 8.9 per cent, on a year-on-year basis, in September 2024. Net Credit to the Government from the banking system decreased by Rs. 42.5 bn in September 2024. Outstanding credit to public corporations increased by Rs. 5.8 bn in September 2024. Outstanding credit extended to the private sector increased by Rs. 88.9 bn in September 2024 recording a year-on-year growth of 8.9 per cent

During the week, yield rates for both T-Bills and T-Bonds remained broadly stable. The rupee value of T-Bills and T-Bonds held by foreign investors increased by 4 per cent during the reporting week

In the reporting week, the auction for T-Bills experienced oversubscription rate of approximately 1.7 times. An increase of 16.7 per cent was observed in the total volume of secondary market transactions in T-Bills and T-Bonds in the reporting week compared to the week before.

During the year up to 08th November 2024, the Sri Lanka rupee appreciated against the US dollar by 10.7 per cent. Workers’ remittances amounted to US dollars 587.7 mn in October 2024, compared to US dollars 555.6 mn in September 2024 and US dollars 517.4 mn in October 2023. Earnings from tourism amounted to US dollars 185.6 mn in October 2024, compared to US dollars 181.0 mn in September 2024 and US dollars 136.7 mn in October 2023.

The net purchases by CBSL from the domestic foreign exchange market amounted to US dollars 189.5 mn in October 2024.

The gross official reserves were provisionally estimated at US dollars 6,467 mn as at end October 2024. This includes proceeds from the People’s Bank of China (PBOC) swap arrangement, which is subject to conditionalities on usability.

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NDB leads digital future with multiple wins at SLIM DIGIS 2.4

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The bank's dedication to digital marketing excellence was recognised with three prestigious awards

NDB Bank has announced its achievements at the SLIM DIGIS 2.4 Awards, where the bank’s dedication to digital marketing excellence was recognised with three prestigious awards. These accolades are a testament to the Bank’s commitment to not only pushing boundaries in digital marketing but also its ongoing efforts to lead innovation within Sri Lanka’s banking sector.

At this year’s SLIM DIGIS 2.4, NDB Bank was awarded Silver for the Best Digital Marketing Campaign in Banking/Finance for the impactful NDB Leasing: Number One Leasing Solution campaign. This campaign showcased NDB Leasing’s position as the premier leasing solution provider, capturing customer interest while ensuring optimised marketing spend for a strong return on investment, while simultaneously underscoring the Bank’s commitment to driving measurable results within the competitive digital landscape.

The bank also took home Bronze in the Best Use of Experiential Digital Marketing category for its creative NDB Talking Calendar. This innovative campaign provided an interactive and engaging experience, highlighting NDB’s focus on customer-centric digital initiatives that go beyond conventional approaches.

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DIMO enhances Rank Container Terminals efficiency with Kalmar Reach Stacker

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RCT, Customs, and DIMO officials at the handover ceremony

DIMO recently supplied a Kalmar Reach Stacker to Rank Container Terminals (RCT), a prominent player in the country’s logistics industry. The delivery took place at RCT’s Orugodawaththa facility with the participation of RCT officials, customs officers, and DIMO representatives.

The Kalmar Reach Stacker is a versatile and efficient solution designed to handle, transport, and stack shipping containers. It is known for its flexibility and ability to efficiently stack containers and move them across short distances. The DRU450 is crucial for streamlining logistics operations and optimizing port and terminal efficiency. This is an ideal solution for ports, terminals, and intermodal yards to handle and transport shipping containers.

Ravi Wijeratne, Chairman of RCT said, “We are confident that the state-of-the-art Kalmar Reach Stacker will significantly enhance our operations with its superior handling, streamlined container stacking, and quick maneuverability. Built around Kalmer’s best-in-class series of equipment, this truck boasts superior operator ergonomics and easy serviceability with its efficient performance parameters and extended product life cycle, the DRU450 is the best reach stacker offering maximum value for money. We selected Kalmar from DIMO for its proven track record of reliability, advanced technology, and top-tier performance in container handling equipment. DIMO, as Kalmar’s local agent, provides expert support, timely service, and a commitment to maintaining high operational standards, making it the ideal choice for optimizing our logistics efficiency.”

Chaminda Ranawana, Executive Director at DIMO, said, “With Sri Lanka’s strategic location and the growing demand for efficient cargo handling, DIMO, together with Kalmar, is poised to play a crucial role in shaping the country’s logistics landscape. Kalmar’s advanced equipment, coupled with DIMO’s unparalleled aftersales service, offers a winning combination for enhancing port productivity and sustainability. As Sri Lanka aims to become a regional logistics hub, we are committed to providing the innovative solutions needed to drive its success.”

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